Please be seated. Thank you all
very much. Thanks for the warm welcome. Mr. Prime Minister, thank you, and Mrs.
Martin, for a fantastic dinner last night in Ottawa. We really loved it. My only
regret today is that Laura is not with me. She is -- went home to thank those
who have been decorating the White House for the great Christmas season that's
coming up. I married well.

I appreciate the Premiers who are here. Premier
Hamm, thank you for your hospitality. Premier Lord, Premier Binns, and Premier
Williams, I appreciate you all joining. I want to specifically mention the
Premiers 'cause, as an ex-governor, I feel a special kinship to those who run
the provinces here in Canada. But thank you for your service. Ambassador
Cellucci, mayors, local officials, distinguished guests, ladies and gentlemen, I
am honored to be with you today to reaffirm America's enduring ties to your
country. I am really glad to be in Canada, and I'm really glad to be among
friends. I appreciate the warm hospitality we've received.

In the past year, I've come to know your new
Prime Minister. We've met in Mexico, in the United States, in Chile, and now in
Canada. Paul Martin is a leader who is asserting Canada's good influence in the
world. And as I prepare for a second term in office, I look forward to a
successful working partnership between our two countries.

Paul and I share a great vision for the future,
two prosperous, independent nations joined together by the return of NHL hockey.

I told Paul that I really have only one regret
about this visit to Canada. There's a prominent citizen who endorsed me in the
2000 election, and I wanted a chance to finally thank him for that -- that
endorsement. I was hoping to meet
Jean Poutine.

I'm proud to stand in this historic place,
which has welcomed home so many Canadians who defended liberty overseas, and
where so many new Canadians began their North American dream. I'm grateful for
the hospitality shown by the people of this fine city who have been so very kind
to Americans before.

Three years ago, Halifax and other towns and
villages -- from Newfoundland to Manitoba to the Northwest Territories to
British Columbia -- welcomed, as the Prime Minister mentioned, more than 33,000
passengers on diverted flights. For days after September the 11th, Canadians
came to the aid of men and women and children who were worried and confused and
had nowhere to sleep. You opened your homes and your churches to strangers. You
brought food; you set up clinics; you arranged for calls to their loved ones,
and you asked for nothing in return.

One
American declared, "My heart is overwhelmed at the outpouring of Canadian
compassion. How does a person say 'thank you' to a nation?" Well, that's
something a President can do. And so let me say directly to the Canadian people,
and to all of you here today who welcomed Americans, thank you for your kindness
to America in an hour of need.

That emergency revealed the good and generous
heart of this country, and showed the true feelings of Canadians and Americans
toward each other. The affection that appeared in an instant will always be
there, and it runs deep. Beyond the words of politicians and the natural
disagreements that nations will have, our two peoples are one family, and always
will be.

We're united in part by the daily contact of
commerce, and both our nations are better off for it. In the 10 years since the
North American Free Trade Agreement was
enacted, trade between the United States and Canada has nearly doubled.
Twenty-three percent of America's exports go directly north; and more than 80
percent of Canadians' exports go to my country. With so much trade, there are
bound to be some disagreements. I proudly ate some Alberta beef last night and
I'm still standing. With determined efforts, and relying on sound science and
mutual goodwill, we can resolve issues. Take, for example, those PEI potatoes.
Right, Mr. Premier?

Canada represents America's most vital trade
relationship in the whole world, and we will do all that is necessary to keep
that relationship strong.

Yet, our ties go deeper than trade. Our
community of values reaches back centuries. Canada and the U.S. may have
disagreed on the wisdom of separating from the Crown, but we've always agreed on
the great principles of liberty derived from our common heritage. We believe in
the dignity of every human life, and we believe in the right of every person to
live in freedom. We believe in free markets, humanized by compassion and
fairness. We believe a diverse society can also be united by principles of
justice and equality. The values we hold have made us good neighbors for
centuries, and they will keep us as strong allies and good friends for the
centuries to come.

These shared convictions have also led our
great democracies to accept a mission in the wider world. We know it is not
possible to live in quiet isolation of our peaceful continent, hoping the
problems and challenges of other nations will pass us by. We know there can be
no security, no lasting peace in a world where proliferation and terrorism, and
genocide, and extreme poverty go unopposed.

We know that our own interests are served by an
international system that advances human rights, and open societies, and free
trade, and the rule of law, and the hope that comes from self-government. Both
Canada and the United States have accepted important global duties, and we will
meet those responsibilities, for our own benefit and for the good of mankind.

Canada's leadership is helping to build a
better world. Over the past decade, Canadian troops have helped bring stability
to Bosnia and Kosovo. Canada's willingness to send peacekeepers to Haiti saved
thousands of lives and helped save Haiti's constitutional government. Canadian
troops are serving bravely in Afghanistan at this hour. Other Canadians stand on
guard for peace in the Middle East, in Cyprus, Sudan, and the Congo.

Just two weeks ago, NATO countries showed their
esteem for your military by electing General Ray Henault as Chairman of NATO's
Military Committee. This admiration for your armed forces goes way back, and for
good reason. It was said during World War I, the Canadians never budge. America
respects the skill and honor and the sacrifice of Canadians' armed -- Canada's
armed forces.

Our nations play independent roles in the
world, yet our purposes are complementary. We have important work ahead. A new
term in office is an important opportunity to reach out to our friends. I hope
to foster a wide international consensus among three great goals. The first
great commitment is to defend our security and spread freedom by building
effective multinational and multilateral institutions and supporting effective
multilateral action.

The tasks of the 21st century, from fighting
proliferation to fighting the scourge of HIV/AIDS, to fighting poverty and
hungry [sic] cannot be accomplished by a single nation alone. The United States
and Canada participate together in more multilateral institutions than perhaps
any two nations on Earth -- from NATO in Europe to the OAS in the Western
Hemisphere to APEC in the Pacific. Canada and the United States are working with
a coalition of nations through the Proliferation Security Initiative to stop and
seize shipments of weapons of mass destruction, materials and delivery systems
on land and at sea and in the air.

America always prefers to act with allies at
our side, and we're grateful to Canada for working closely with us to confront
the challenges of Iran and North Korea. Multilateral organizations can do great
good in the world.

Yet, the success of multilateralism is measured
not merely by following a process, but by achieving results. The objective of
the U.N. and other institutions must be collective security, not endless debate.
For the sake of peace, when those bodies promise serious consequences, serious
consequences must follow. America and Canada helped create the United Nations,
and because we remain committed to that institution, we want it to be more than
a League of Nations.

My country is determined to work as far as
possible within the framework of international organizations, and we're hoping
that other nations will work with us to make those institutions more relevant
and more effective in meeting the unique threats of our time.

Our second commitment is to fight global
terrorism with every action and resource the task requires. Canada has taken a
series of critical steps to guard against the danger of terrorism. You created
the Department of Public Safety and Emergency Preparedness. You've toughened
your anti-terror laws. You're upgrading your intelligence. I want to thank the
government for all those constructive and important decisions.

Our two countries are working together every
day -- every day -- to keep our people safe. That is the most solemn duty I
have, and the most solemn duty the Prime Minister has. From the
smart border accordto the container security initiative to the joint
command of NORAD, we are working together. I hope we'll also move forward on
ballistic missile defense cooperation to protect the next generation of
Canadians and Americans from the threats we know will arise.

The energetic defense of our nations is an
important duty. Yet, defense alone is not a sufficient strategy. On September
the 11th, the people of North America learned that the two vast oceans and
friendly neighbors cannot fully shield us from the dangers of the 21st century.
There's only one way to deal with enemies who plot in secret and set out to
murder the innocent and the unsuspecting: We must take the fight to them. We
must be relentless and we must be steadfast in our duty to protect our people.

Both of the countries have learned this lesson.
In the early days of World War II, when the United States was still wrestling
with isolationism, Canadian forces were already engaging the enemies of freedom
from the Atlantic -- across the Atlantic. At the time, some Canadians argued
that Canada had not been attacked and had no interest in fighting a distant war.
Your Prime Minister, McKenzie King, gave this answer: "We cannot defend our
country and save our homes and families by waiting for the enemy to attack us.
To remain on the defensive is the surest way to bring the war to Canada. Of
course, we should protect our coasts and strengthen our ports and cities against
attack," but the Prime Minister went on to say, "we must also go out and meet
the enemy before he reaches our shores. We must defeat him before he attacks us,
before our cities are laid to waste." McKenzie King was correct then, and we
must always remember the wisdom of his words today.

In the new era the threat is different, but our
duties are the same. Our enemies have declared their intentions -- and so have
we. Peaceful nations must keep the peace by going after the terrorists and
disrupting their plans and cutting off their funding. We must hold the sponsors
of terror equally responsible for terrorist acts. We must prevent outlaw regimes
from gaining weapons of mass destruction and providing them to terrorists. We
must stay at these efforts with patience and resolve, until we prevail.

Our third great commitment is to enhance our
own security by promoting freedom and hope and democracy in the broader Middle
East. The United States and Canada and all free nations need to look ahead. If,
20 years from now, the Middle East is dominated by dictators and mullahs who
build weapons of mass destruction and harbor terrorists, our children and our
grandchildren will live in a nightmare world of danger. That must not happen.

By taking the side of reformers and democrats
in the Middle East, we will gain allies in the war on terror, and isolate the
ideology of murder and help to defeat the despair and hopelessness that feeds
terror. The world will become a much safer place as democracy advances.

For decades of tyranny and neglect in the
broader Middle East, progress toward freedom will not come easily. I know that.
Yet, it is cultural condescension to claim that some peoples or some cultures or
some religions are destined to despotism and unsuited for self-government.

Today in the Middle East, the doubters and
pessimists are being proven wrong. We're seeing movement toward elections, and
greater rights for women, and open discussion of peaceful reform. I believe that
people across the Middle East are weary of poverty and oppression and plead in
silence for their liberty. I believe this is an historic moment in the broader
Middle East, and we must seize this moment by standing with everyone who stands
for liberty.

We're standing with the people of Afghanistan,
a nation that has gone from a safe haven for terrorists to a steadfast ally in
the war on terror in three-and-a-half short years. Canada deployed more than
7,000 troops and much of your navy in support of Operation Enduring Freedom.
This year, your country has led the International Security Assistance Force in
Kabul. The coalition we share is doing honorable work; yet democracy is taking
hold in that country because the Afghan people, like people everywhere, want to
live in freedom. They registered by the millions to vote in October. They stood
in long lines on election day. An Afghan widow brought all four of her daughters
to vote alongside her. She said, "When you see women here lined up to vote, this
is something profound. I never dreamed this day would come." But that woman's
dream finally arrived, as it will one day across the Middle East. These are
unprecedented, historic events that many said would never come. And Canadians
can be proud of the part you have played in the advance of human liberty.

We must also stand with the brave people of
Iraq who are preparing for elections on January the 30th. Sometimes, even the
closest of friends disagree. And two years ago, we disagreed about the best
course of action in Iraq. Yet, as your Prime Minister made clear in Washington
earlier this year, there is no disagreement at all with what has to be done in
going forward. We must help the Iraqi people secure their country and build a
free and democratic society. The Canadian government has pledged more than 200
million dollars in humanitarian aid and reconstruction assistance, and agreed to
relieve more than 450 million dollars in Iraqi debt. That help is greatly
appreciated.

There's more work to be done together. Both
Canada and the United States, and all free nations, have a vital interest in the
success of a free Iraq. The terrorists have made Iraq the central front in the
war on terror because they know what is at stake. When a free and democratic
society is established in Iraq, in the heart of the Middle East, it will be a
decisive blow to their aspirations to dominate the region and its people. A free
Iraq will be a standing rebuke to radicalism, and a model to reformers from
Damascus to Tehran.

In
Fallujah and elsewhere, our coalition and Iraqi forces are on the offensive and
we are delivering a message: Freedom, not oppression, is the future of Iraq.
Freedom is a precious right for every individual, regardless of the color of
their skin or the religion they may hold. A long night of terror and tyranny in
that region is ending, and a new day of freedom and hope and self-government is
on the way.

And we will stand with the Palestinian and
Israeli peoples and help end the destructive conflict between them. Prime
Minister Martin has expressed the desire of his government to take a broader
role in the quest for peace and democracy, and America welcomes your
involvement. It's a time of change and a time of hope in that region.

We seek justice and dignity, and a viable
independent and democratic state for the Palestinian people. We seek security
and peace for the state of Israel, a state that Canada, like America, first
recognized in 1948. These are worthy goals in themselves, and by reaching them,
we will also remove an excuse for hatred and violence in the broader Middle
East.

Achieving peace in the Holy Land is not just a
matter of pressuring one side or the other on the shape of a border or the site
of a settlement. This approach has been tried before, without success. As we
negotiate the details of peace, we must look to the heart of the matter, which
is the need for a Palestinian democracy. The Palestinian people deserve a
peaceful government that truly serves their interests, and the Israeli people
need a true partner in peace.

Our destination is clear: two states, Israel
and Palestine, living side-by-side in peace and security. And that destination
can be reached by only one path, the path of democracy and reform and the rule
of law. If all parties will apply effort, if all nations who are concerned about
this issue will apply goodwill, this conflict can end and peace can be achieved.
And the time for that effort and the time for that goodwill is now.

The United States and Canada face common
threats in our world, and we share common goals that can transform our world.
We're bound by history and geography and trade, and by our deepest convictions.
With so much in common and so much at stake, we cannot be divided. I realize,
and many Americans realize, that it's not always easy to sleep next to the
elephant. Sometimes, our laws and our actions affect Canada every bit as much as
they affect us, and we need to remember that. And when frustrations are vented,
we must not take it personally. As a member of Canada's Parliament said in the
1960s, "The United States is our friend, whether we like it or not." When all is
said and done, we are friends -- and we like it.

Three years ago, when the American planes were
diverted away from home, passengers knew they were safe and welcome the moment
they saw the Maple Leaf flag. One of them later said of the Canadians he met,
"They taught me the meaning of the word, 'friend.'" For generations, the nation
of Canada has defined the word, "friend," and my country is grateful.

God has blessed America in many ways. God has
blessed us 'cause we have neighbors like you. And today, I ask that God
continues to bless the people of Canada.